JD Sports Fashion PLC (LSE: JD.) said it will sell Footasylum Limited and its associated subsidiaries to German asset management firm Aurelius Group for £37.5mln.
The sale is expected to close unconditionally over the next few weeks.
Britain’s largest sportswear retailer said sales are in line with final agreements issued by the Competition and Markets Authority (CMA) after JD’s acquisition of Futsilm was put on hold last year.
“JD has cooperated with CMA throughout the disinvestment process, which includes ensuring that the buyer is acceptable to CMA and meets certain key criteria set forth within the final undertakings,” the company said in a statement.
Footasylum was bought by JD Sports in 2019 for £90mln, but the purchase was reversed on grounds of competition.
The CMA argued that the acquisition could reduce competition and result in poor deals for Footasylum customers.
Former JD Sports president Peter Cowgill called the decision “inexplicable” at the time, although following Cowgill’s departure from JD Sports, the narrative shifted to governance and internal control.
In February, the firm was fined £4.3 million for breaking the rules.
“I would like to sincerely thank the teams at Aurelius and Futasilum who have worked closely with CMA. We wish both sides every success for the future,” said Cath Smith, interim CEO of JD Sports.
Shares of the company were up 0.50% at 130.20p in London.